Tamkeen and BMI Bank announced an extension to their alliance providing Shari’ah-compliant financing for enterprises within the local private sector to fulfill their financial needs at a competitive cost.
Initially launched in November 2010, the joint scheme offers a suite of Shari’ah-compliant financial products under the umbrella of the Islamic banking division within the bank.
The new agreement marks the third contribution of BHD 10 million made by the bank expanding the total portfolio to a total of BHD 30 million. A ceremony was held to mark the occasion at Tamkeen’s headquarters and attended by Jamal Al-Hazeem — Chief Executive Officer of BMI Bank, Salah Khalifa — Assistant General Manager and Head of Islamic Banking at BMI Bank, Dr Ahmed AbdulGhani Al Shaikh — Vice President for Enterprise and Human Capital Development at Tamkeen and Aisha Al Balushi from the Private Sector Support Department at Tamkeen. As part of the agreement, Tamkeen will guarantee 50 per cent of the total financing amount as well as subsidise 50 per cent of the profit payments due from customers.
Through this financing scheme, enterprises within the private sector are eligible to receive financing ranging from BD 10,000 to BHD 500,000 to help design a higher growth trajectory for their companies.
This scheme offers a range of trade finance products such as letters of credit and guarantee, Murabaha financing which covers working capital, machinery and equipment financing as well as Ijara financing at a subsidised profit rate of four per cent per annum on reducing balance with an option of a longer repayment tenor of up to 10 years.
peaking after signing the extension, Jamal Al-Hazeem, CEO of BMI Bank said: “As a locally responsible bank, we are honored to further extend our fruitful relationship with our partner Tamkeen by entering the third phase of the scheme.
One of the significant characters of a flourishing and fast-growing economy is a thriving small and medium enterprises (SME) sector. SMEs play a fundamental role in the overall development of a nation as vehicles to employment and job creation, production, design and more importantly innovation. They are development entrepreneurs providing desired sustainability.”
Also commenting on this partnership, Tamkeen’s Vice President for Enterprise and Human Capital Development, Ahmed AbdulGhani Al Shaikh said: “We are continuing with our mission to support the private sector and put enterprises on the fast-track towards success.
Our finance schemes provide enterprises with the capital they need for growth and expansion through various Shari’ah-compliant financing solutions. In this regard, we are pleased to renew our partnership with BMI Bank which is one of our leading partners in the finance scheme. This agreement will continue to bridge the finance gap for many Bahraini enterprises that require the necessary funding for various operational activities.”